Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility, 25460-25462 [2016-09901]
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25460
Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices
these types of orders would further align
the exclusion of Professional-toProfessional orders with the exclusion
of Customer-to-Customer and Customerto-Professional orders from receiving a
QCC Rebate.
The Exchange’s proposal does not
place on undue burden on inter-market
competition because the QCC order type
is similar on other options exchanges 36
and these exchanges may also file to
eliminate the distinction between
Customers and Professionals for the
QCC order type.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.37
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
mstockstill on DSK3G9T082PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2016–52 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
36 See Chicago Board Options Exchange,
Incorporated’s Fees Schedule and Miami
International Securities Exchange LLC’s Pricing
Schedule.
37 15 U.S.C. 78s(b)(3)(A)(ii).
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22:09 Apr 27, 2016
Jkt 238001
All submissions should refer to File
Number SR–Phlx–2016–52. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml).
Copies of the submission, all
subsequent amendments, all written
statements with respect to the proposed
rule change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–Phlx–2016–52 and should
be submitted on or before May 19, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Brent J. Fields,
Secretary.
[FR Doc. 2016–09898 Filed 4–27–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77694; File No. SR–BOX–
2016–17]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
the Fee Schedule on the BOX Market
LLC (‘‘BOX’’) Options Facility
April 22, 2106.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 12,
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
2016, BOX Options Exchange LLC (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend the Fee Schedule to amend
the BOX Volume Rebate (‘‘BVR’’) in
Section I.B.2 of the Fee Schedule on the
BOX Market LLC (‘‘BOX’’) options
facility. While changes to the fee
schedule pursuant to this proposal will
be effective upon filing, the changes will
become operative on April 13, 2016.
The text of the proposed rule change is
available from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s Internet Web site at https://
boxexchange.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule for trading on BOX.
Specifically, the Exchange proposes to
amend the BOX Volume Rebate (‘‘BVR’’)
in Section I.B.2 of the Fee Schedule.
Under the current BVR, the Exchange
offers a tiered per contract rebate for all
38 17
1 15
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3 15
4 17
E:\FR\FM\28APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
28APN1
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Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices
PIP Orders and COPIP Orders of 100
contracts and under. PIP and COPIP
executions of 100 contracts and under
are awarded a per contract rebate
calculated on a monthly basis by
totaling the Participant’s PIP and COPIP
volume submitted to BOX, relative to
the total national Customer volume in
multiply-listed options classes. The
current per contract rebate for
Participants in PIP and COPIP
Transactions under the BVR is:
Per contract rebate
(all account types)
Percentage thresholds of national customer volume in multiply-listed options classes
(monthly)
Tier
PIP
1
2
3
4
..........
..........
..........
..........
0.000% to 0.159% ..................................................................................................................................
0.160% to 0.339% ..................................................................................................................................
0.340% to 0.99% ....................................................................................................................................
1.00% and Above ...................................................................................................................................
mstockstill on DSK3G9T082PROD with NOTICES
The Exchange proposes to amend the
BVR to apply the rebate to only those
PIP Orders and COPIP Orders of 100
and under contracts that do not trade
solely with their contra order. The
percentage thresholds will continue to
be based on all PIP and COPIP volume
submitted to BOX, relative to the total
national Customer volume in multiplylisted options classes.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,
in general, and Section 6(b)(4) and
6(b)(5) of the Act,5 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees, and other
charges among BOX Participants and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers or dealers.
The Exchange believes the proposed
amendments to the BVR are reasonable,
equitable and non-discriminatory. The
BVR was adopted to attract Public
Customer order flow to the Exchange by
offering these Participants incentives to
submit their PIP and COPIP Orders to
the Exchange. The Exchange believes it
is reasonable and appropriate to
continue to provide incentives for
Public Customers, which will result in
greater liquidity and ultimately benefit
all Participants trading on the Exchange.
The Exchange believes providing a
rebate to Participants that reach a
certain volume threshold is equitable
and non-discriminatory as the rebate
will apply to all Participants uniformly.
The Exchange believes it is
reasonable, equitable and nondiscriminatory to apply the BVR to PIP
and COPIP Orders that do not trade
solely with their contra order. The BVR
is intended to incentivize Participants to
direct Customer order flow to the
Exchange, and the Exchange believes
incentives are not necessary for
internalized PIP and COPIP Orders that
only trade against their contra order.
5 15
U.S.C. 78f(b)(4) and (5).
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22:09 Apr 27, 2016
Jkt 238001
Additionally, other Exchanges also
make this distinction when providing
rebates for transactions in their auction
mechanisms.6
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the proposed fee
changes are reasonably designed to
enhance competition in BOX
transactions, particularly auction
transactions.
The proposed rule change amends the
BVR to only provide a rebate when the
PIP or COPIP Order does not trade with
its contra order. The Exchange does not
believe that the proposed change
burdens competition and will instead
help promote competition by providing
additional incentives for market
participants to submit customer order
flow to BOX and thus, create a greater
opportunity for retail customers to
receive additional price improvement.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 7 and
Rule 19b–4(f)(2) thereunder,8 because it
establishes or changes a due, or fee.
6 See the International Securities Exchange
(‘‘ISE’’) Fee Schedule. Under the ISE Fee Schedule
the initiator receives a ‘‘break-up’’ rebate only for
contracts that are submitted to their auction
mechanism that do not trade with their contra
order.
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
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Sfmt 4703
($0.00)
(0.04)
(0.11)
(0.14)
COPIP
($0.00)
(0.02)
(0.04)
(0.06)
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2016–17 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BOX–2016–17. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
E:\FR\FM\28APN1.SGM
28APN1
25462
Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BOX–
2016–17, and should be submitted on or
before May 19, 2016.
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to EDGX Rules
15.1(a) and (c) (‘‘Fee Schedule’’) to
amend the Investor Depth Tier under
footnote 1.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
[Release No. 34–77691; File No. SR–
BatsEDGX–2016–11]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
Self-Regulatory Organizations; Bats
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Related to Fees
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–09901 Filed 4–27–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK3G9T082PROD with NOTICES
April 22, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 11,
2016, Bats EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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1. Purpose
The Exchange determines the
liquidity adding rebate that it will
provide to Members using the
Exchange’s tiered pricing structure.
Under such pricing structure, a Member
will receive a rebate of anywhere
between $0.0025 and $0.0034 per share
executed, depending on the volume tier
for which such Member qualifies. In
January 2014, the Exchange adopted the
Investor Depth Tier under footnote 1 of
the Fee Schedule.6 Members who
qualify for the Investor Depth Tier
receive a rebate of $0.0033 per share
where they: (i) Add an ADV 7 of at least
0.15% of the TCV; 8 (ii) have an ‘‘added
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
6 See Securities Exchange Act Release No. 76816
(January 4, 2016, 81 FR 987 (January 8, 2016) (SR–
EDGX–2015–67).
7 As defined in the Exchange’s Fee Schedule
available at https://batstrading.com/support/fee_
schedule/edgx/.
8 Id.
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Frm 00094
Fmt 4703
Sfmt 4703
liquidity’’ as a percentage of ‘‘added
plus removed liquidity’’ of at least 85%;
and (3) add an ADV of at least 500,000
share as Non-displayed 9 orders that
yield fee code HA.10
The Exchange now proposes to amend
the Investor Depth Tier to: (i) Decrease
the Member’s added ADV threshold in
Non-Displayed orders from 500,000
shares to 400,000 shares; and (ii) permit
a Member’s added ADV to include NonDisplayed orders that yield fee codes HI
and/or MM, in addition to fee code HA.
Fee code HI is appended to NonDisplayed orders that receive price
improvement and add liquidity, and fee
code MM is appended to Non-Displayed
orders that add liquidity using MidPoint
Peg Orders.11 Lowering the Member’s
ADV threshold would encourage
Members who cannot meet the tier’s
current criteria to increase their volume
on the Exchange in order to achieve the
lower threshold. Also, permitting NonDisplayed orders that yield fee codes HI
and/or MM, in addition to fee code HA,
to be included as part of the Member’s
ADV would enable Members that utilize
other types of Non-Displayed orders to
be included as part of the Members
added ADV for purposes to satisfying
the Investor Depth Tier. In addition,
lowering the ADV threshold, combined
with the additional fee codes, necessary
to achieve the tier should encourage
Members to add displayed liquidity, as
only the displayed liquidity in this tier
is awarded the enhanced rebate. The
remainder of the criteria required to
meet the tier as well as the rate offered
by the tier would remain unchanged.
The Exchange proposes to implement
this amendment to its Fee Schedule
immediately.12
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,13
in general, and furthers the objectives of
Section 6(b)(4),14 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities. The
Exchange also notes that it operates in
9 See Exchange Rule 11.6(e)(2) for the definition
of Non-Displayed.
10 Fee code HA is appended to Non-displayed
orders that add liquidity on the Exchange. See the
Exchange’s Fee Schedule available at https://
batstrading.com/support/fee_schedule/edgx/.
11 See Exchange Rule 11.8(d) for a description of
MidPoint Peg orders.
12 The Exchange initially filed the proposed
change on April 1, 2016 (SR–BatsEDGX–2016–06).
On April 11, 2016, the Exchange withdrew SR–
BatsEDGX–2016–06 and submitted this filing).
13 15 U.S.C. 78f.
14 15 U.S.C. 78f(b)(4).
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Agencies
[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)]
[Notices]
[Pages 25460-25462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09901]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77694; File No. SR-BOX-2016-17]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility
April 22, 2106.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 12, 2016, BOX Options Exchange LLC (the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule to
amend the BOX Volume Rebate (``BVR'') in Section I.B.2 of the Fee
Schedule on the BOX Market LLC (``BOX'') options facility. While
changes to the fee schedule pursuant to this proposal will be effective
upon filing, the changes will become operative on April 13, 2016. The
text of the proposed rule change is available from the principal office
of the Exchange, at the Commission's Public Reference Room and also on
the Exchange's Internet Web site at https://boxexchange.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule for trading on BOX.
Specifically, the Exchange proposes to amend the BOX Volume Rebate
(``BVR'') in Section I.B.2 of the Fee Schedule.
Under the current BVR, the Exchange offers a tiered per contract
rebate for all
[[Page 25461]]
PIP Orders and COPIP Orders of 100 contracts and under. PIP and COPIP
executions of 100 contracts and under are awarded a per contract rebate
calculated on a monthly basis by totaling the Participant's PIP and
COPIP volume submitted to BOX, relative to the total national Customer
volume in multiply-listed options classes. The current per contract
rebate for Participants in PIP and COPIP Transactions under the BVR is:
------------------------------------------------------------------------
Percentage thresholds Per contract rebate (all
of national customer account types)
Tier volume in multiply- -------------------------------
listed options
classes (monthly) PIP COPIP
------------------------------------------------------------------------
1................ 0.000% to 0.159%..... ($0.00) ($0.00)
2................ 0.160% to 0.339%..... (0.04) (0.02)
3................ 0.340% to 0.99%...... (0.11) (0.04)
4................ 1.00% and Above...... (0.14) (0.06)
------------------------------------------------------------------------
The Exchange proposes to amend the BVR to apply the rebate to only
those PIP Orders and COPIP Orders of 100 and under contracts that do
not trade solely with their contra order. The percentage thresholds
will continue to be based on all PIP and COPIP volume submitted to BOX,
relative to the total national Customer volume in multiply-listed
options classes.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes the proposed amendments to the BVR are
reasonable, equitable and non-discriminatory. The BVR was adopted to
attract Public Customer order flow to the Exchange by offering these
Participants incentives to submit their PIP and COPIP Orders to the
Exchange. The Exchange believes it is reasonable and appropriate to
continue to provide incentives for Public Customers, which will result
in greater liquidity and ultimately benefit all Participants trading on
the Exchange. The Exchange believes providing a rebate to Participants
that reach a certain volume threshold is equitable and non-
discriminatory as the rebate will apply to all Participants uniformly.
The Exchange believes it is reasonable, equitable and non-
discriminatory to apply the BVR to PIP and COPIP Orders that do not
trade solely with their contra order. The BVR is intended to
incentivize Participants to direct Customer order flow to the Exchange,
and the Exchange believes incentives are not necessary for internalized
PIP and COPIP Orders that only trade against their contra order.
Additionally, other Exchanges also make this distinction when providing
rebates for transactions in their auction mechanisms.\6\
---------------------------------------------------------------------------
\6\ See the International Securities Exchange (``ISE'') Fee
Schedule. Under the ISE Fee Schedule the initiator receives a
``break-up'' rebate only for contracts that are submitted to their
auction mechanism that do not trade with their contra order.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes the
proposed fee changes are reasonably designed to enhance competition in
BOX transactions, particularly auction transactions.
The proposed rule change amends the BVR to only provide a rebate
when the PIP or COPIP Order does not trade with its contra order. The
Exchange does not believe that the proposed change burdens competition
and will instead help promote competition by providing additional
incentives for market participants to submit customer order flow to BOX
and thus, create a greater opportunity for retail customers to receive
additional price improvement.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \7\ and Rule 19b-4(f)(2)
thereunder,\8\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BOX-2016-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BOX-2016-17. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than
[[Page 25462]]
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2016-17, and should be
submitted on or before May 19, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-09901 Filed 4-27-16; 8:45 am]
BILLING CODE 8011-01-P